Report of the Independent Auditor to An Post on compliance with the European Communities (Postal Services) Regulations 2002 (the Regulations) concerning cost accounting systems and with the Regulator’s Direction.

In addition to our audit of the financial statements, we have reviewed the directors’ statement concerning the Company’s compliance, for the year ended 31 December, 2008, with the accounting provisions of the Regulations and with the direction to An Post setting out the Regulator’s detailed requirements in relation to the accounting systems of An Post (the Direction), issued on 8 December, 2006 by the postal services regulator, ComReg, in relation to the accounting systems of An Post.

Respective Responsibilities of Directors and Auditor

The directors prepare an annual statement of compliance with the accounting provisions of the Regulation and the Direction for which they are responsible. The objective of our review is to draw attention to non-compliance with the requirements of the accounting provisions of the Regulations and with the Direction. Our review does not constitute an audit of the separated accounts. A separate audit report will be issued on the audit of the regulatory accounts.

Basis of Opinion

We carried out our review in accordance with the general principles and guidance of the Auditing Practices Board.

Opinion

Based on enquiry of certain directors and officers of the Company and examination of relevant documents, in our opinion, the directors’ statement appropriately reflects the Company’s compliance, for the year ended 31 December, 2008, with the accounting provisions of the Regulations and with the Direction on the Accounting Systems of An Post, dated 8 December, 2006 issued by ComReg.

KPMG

Chartered Accountants
1 Stokes Place
St Stephen’s Green
Dublin 2
19 March, 2009